Although the daily news headlines indicate that General Motors is headed for Chapter 11 bankruptcy if it doesn’t receive government aid, Suzuki is “100 percent” confident that GM will be able to survive, even if a bailout package isn’t passed in Washington.
GM has been partners with Suzuki for the last 27 years, with GM holding a 20 percent stake in the Japanese automaker at the height of their relationship. That relationship, however, came to an end recently as GM sold its remaining 3 percent stake in Suzuki to raise extra capital.
That close relationship gave Suzuki Motor Corp Chief Executive Osamu Suzuki an inside look at GM, but even with all he knows, Suzuki doesn’t feel GM is in jeopardy of Chapter 11. “We are absolutely not assuming a scenario in which GM files for Chapter 11,” Suzuki told CNBC.com. “I believe it’s 100 percent outside the realm of possibility.”
Despite Suzuki’s optimism, GM still has a hard row to hoe. New car sales are near historic lows, with 2009 not looking any brighter.
